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New paradigm: Chinese agency sets agenda for "equivalent exchange" through crude pipelines
Jun 15:
A Chinese agency paper on energy cooperation between India and China is under consideration of the Indian government, according to well placed sources.
8The paper sets out complex flow diagrams to show how Indian and Chinese crude and product flow footprints overlap and cooperation could bring about better results
8Both India and China would require to import around 400 and 500 million tonnes of crude respectively by 2030
8The assumption is that given the high degree of overlap between these two major crude oil importers, India’s effort to access overseas oil resources will inevitably affect the interests of China. China’s and India’s bidding experience for oil resources in Angola and Ecuador demonstrates that competition over overseas oil resources between the two countries is inevitable. And this brings about an increase in asset prices
8Cooperation between the two countries can therefore keep "resource premiums" down.
8The agency has now claimed that China can solve the Malacca Strait dilemma through an "equivalent exchange" paradigm by building crude pipelines through India while China, in return, will allow a crude pipeline to be built from Russia to India
8Both countries can then share offtake agreements out of these pipelines for their own requirements
Click on Reports for more
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8The paper sets out complex flow diagrams to show how Indian and Chinese crude and product flow footprints overlap and cooperation could bring about better results
8Both India and China would require to import around 400 and 500 million tonnes of crude respectively by 2030
8The assumption is that given the high degree of overlap between these two major crude oil importers, India’s effort to access overseas oil resources will inevitably affect the interests of China. China’s and India’s bidding experience for oil resources in Angola and Ecuador demonstrates that competition over overseas oil resources between the two countries is inevitable. And this brings about an increase in asset prices
8Cooperation between the two countries can therefore keep "resource premiums" down.
8The agency has now claimed that China can solve the Malacca Strait dilemma through an "equivalent exchange" paradigm by building crude pipelines through India while China, in return, will allow a crude pipeline to be built from Russia to India
8Both countries can then share offtake agreements out of these pipelines for their own requirements
Click on Reports for more
